Portland General Electric

Portland General Electric
Company type	Public
Industry	Energy
Founded	1888
Founder	Parker F. Morey, Edward L. Eastham
Headquarters	Portland, Oregon, United States
Area served	Oregon (primarily Portland area)
Products	Electricity generation, transmission, and distribution
Website	www.portlandgeneral.com

Portland General Electric (PGE) is a publicly traded energy corporation listed among the Fortune 1000 companies, headquartered in Portland, Oregon. The company is responsible for generating, transmitting, and distributing electricity to approximately two-thirds of Oregon’s commercial and industrial customers. PGE operates under the regulation of the Oregon Public Utility Commission and was originally established in 1888 as the Willamette Falls Electric Company. Throughout its existence, it has largely maintained independence, except during the period from 1997 to 2006 when it was owned by Houston-based Enron Corporation until Enron’s bankruptcy necessitated divestiture.

PGE provides electrical service to most areas of Portland located west of the Willamette River, while service east of the river is shared with Pacific Power. Its energy production portfolio comprises hydropower, wind, solar, battery storage systems, and thermal power plants, collectively delivering more than 3,300 megawatts of capacity.

In alignment with Oregon House Bill 2021’s goals for decarbonization, PGE has committed to cutting emissions from its retail power supply by 80% by the year 2030 and achieving full elimination of emissions by 2040. As of 2025, non-carbon-emitting sources account for 45% of its electricity generation, although natural gas continues to be the predominant fuel source.

History

The company was founded in 1888 by Parker F. Morey and Edward L. Eastham under the name Willamette Falls Electric Company. In 1889, it became the first U.S. power plant to transmit electricity over a long-distance electric line to Portland. On August 6, 1892, Morey joined with Frederick Van Voorhies Holman and Henry Failing to establish Portland General Electric Company (PGE), backed financially by General Electric and Old Colony Trust with an initial capital investment of $4.25 million. That same year, PGE acquired both Willamette Falls Electric and Albina Light & Water Company.

In May 1893, PGE purchased the City-Eastside Electric Light Plant, a municipal utility—a transaction later criticized as an expensive transfer that burdened taxpayers for private gain. By 1903, under President Henry W. Goode’s leadership, PGE set out to become a "popular public utility," successfully illuminating the Lewis and Clark Centennial Exposition in 1905 after raising $3,000 from shareholders.

PGE expanded its operations through acquisitions of Union Power Company in 1905 and Vancouver Electric Light & Power Company in 1906. That same year marked a merger with Portland Railway Company and Oregon Water Power & Railway Company to form Portland Railway, Light and Power Company (PRL&P), which operated as Portland’s exclusive streetcar provider within city limits and served as a predecessor to today’s PGE.

In 1932, the company was renamed Portland Electric Power Company (PEPCO), before reorganizing back into Portland General Electric in 1948.

On March 1, 1939, PEPCO defaulted on bonds issued five years earlier in 1934, leading to a Chapter X bankruptcy filing on April 3, 1939. This financial distress was largely due to difficult negotiations with Bonneville Power Administration (BPA), changes in leadership at Seattle City Light, and uncertainty regarding the establishment of a public utility district within PGE’s service area. The company emerged from bankruptcy bolstered by access to low-cost BPA power starting late in 1939; profitability was restored by 1941. During this period, Oregon Public Utility Commissioner Ormond R. Bean mandated reductions in customer rates.

During World War II, PGE’s revenues increased significantly by supplying electricity to three Kaiser Shipyards and supporting construction in Vanport City; revenue from shipyard contracts neared $400,000 by 1945. In August 1946, PGE sold Portland Traction for $8 million in cash; its bankruptcy reorganization process concluded on June 29, 1946.

On July 1, 1997, Enron Corporation acquired PGE for $2 billion in stock plus $1.1 billion in debt obligations. Enron attempted to sell PGE in both 1999 and 2001 to various investor-owned utilities such as NW Natural but was unsuccessful. Although PGE management asserted limited involvement in Enron’s financial misconduct—pointing out that employees suffered losses due to frozen retirement funds—CEO Ken Harrison and CFO Joseph Hirko were charged with felonies related to financial misstatements connected to Enron Broadband Services operating within PGE’s corporate offices. Furthermore, traders Timothy Belden and John Forney conducted operations from PGE offices and were convicted for financial crimes tied to the California Electricity Crisis.

Initial efforts to transform the company into a public utility district

Starting in the 1960s, numerous ballot initiatives aimed to convert segments of PGE into a public utility district (PUD), with the most recent attempt occurring in 2003. These efforts largely failed, except for one in 1999 when PGE sold its customer accounts in St. Helens, Scappoose, and Columbia City to West Oregon Electric PUD for $7.9 million. This transaction resulted in Enron retaining ownership of the physical distribution infrastructure, which it managed as a contractor exempt from state oversight. Due to widespread skepticism toward both Enron and PGE, voters approved the measure despite the opposition outspending supporters $71,592 to $2,304. Following this transfer, these municipalities became part of the Columbia River PUD, leading to consistently lower electricity rates than those paid by current PGE customers.

Proposed acquisition by Texas Pacific Group

During Enron’s bankruptcy turmoil, local authorities explored acquiring PGE through condemnation proceedings. On November 17, 2003, Oregon Electric Utility—led by former governor Neil Goldschmidt and financially supported by Texas Pacific Group (TPG)—submitted a $2.35 billion bid for PGE, which was the only offer accepted by the bankruptcy court. After disclosures regarding Goldschmidt’s prior misconduct surfaced, he stepped down and was succeeded by Peter O. Kohler, president of Oregon Health and Science University.

Fears about TPG’s takeover prompted additional voter initiatives to convert parts of PGE into PUDs; nevertheless, these proposals were rejected in Multnomah (November 2003), Yamhill (March 2004), and Clackamas (May 2004) counties. Concurrently, approximately 900 union members represented by the International Brotherhood of Electrical Workers threatened to strike over retiree healthcare benefits and losses in their 401(k) plans; this labor dispute was quickly settled with a new agreement.

The Oregon Public Utility Commission declined TPG’s acquisition proposal on March 10, 2005. Subsequently, Portland city officials renewed negotiations with Enron to purchase PGE, allocating $7.5 million for legal expenses and authorizing $3 billion in bonds to finance the acquisition. Nevertheless, discussions ended on July 20, 2005, when Enron CEO Stephen Cooper cited unresolved issues and the city’s refusal to provide a $50 million deposit as reasons for withdrawal. On that same day, Governor Ted Kulongoski vetoed legislation intended to establish a public corporation for acquiring PGE.

Separation from Enron

In April 2006, shares of the newly independent PGE were distributed as part of Enron’s creditor settlement.

Power plants

Source for section: 2023 Annual Report

Thermal power facilities

Beaver Generating Plant – 511 MWe – a natural gas-fired combined cycle cogeneration facility located in Clatskanie, Oregon; it operates six GE Model MS 7001B combustion turbines alongside one steam turbine arranged in a 6x1 configuration.
Port Westward High Efficiency Gas Power Plants Units 1 & 2 – producing 393 MWe and 214 MWe respectively – situated adjacent to the Beaver Generating Plant.
Carty Generating Plant – 436 MWe – positioned near the site of the former Boardman Coal Plant.
Coyote Springs Generating Plant – 257 MWe – a combined cycle cogeneration station based in Boardman, Oregon, operational since 1995.
Colstrip Power Plant Units 3 & 4 – generating a combined total of 296 MWe – located in Colstrip, Montana.

Hydroelectric Facilities

Faraday (Clackamas River) – 46 MWe capacity
North Fork (Clackamas River) – 58 MWe capacity
Oak Grove (Clackamas River) – 43 MWe capacity
River Mill (Clackamas River) – 25 MWe capacity
T. W. Sullivan (Willamette River) – 18 MWe capacity
Pelton Dam (Deschutes River) – 57 MWe capacity
Round Butte Dam (Deschutes River) – 187 MWe capacity
Bull Run (Sandy and Little Sandy rivers) – 22 MWe capacity (decommissioned in 2007)

Renewable Energy Assets

Biglow Canyon Wind Farm – 450 MWe installed capacity
Tucannon River Wind Farm – 267 MWe installed capacity
Marion County Waste-to-Energy Facility – Generates 13 MWe from municipal waste incineration
Clearwater Wind Farm – 311 MWe installed capacity
Wheatridge Wind Farm – Total of 380 MWe, comprising 300 MWe wind, 50 MWe solar, and a 30 MWe battery storage system

Facilities No Longer in Operation

Boardman Generating Plant (coal-fired) – 601 MWe – Located in Boardman, Oregon; ceased operations on October 15, 2020
Bull Run Hydroelectric Plant (Sandy and Little Sandy rivers) – 22 MWe – Situated in Bull Run, Oregon; closed May 21, 2007
Trojan Nuclear Plant – 1130 MWe – Based in Rainier, Oregon; shut down on November 9, 1992

Renewable Energy Program Leadership

For fourteen consecutive years, PGE has been recognized by the U.S. Department of Energy's National Renewable Energy Laboratory as the leading electric utility in the nation for customer participation in renewable energy initiatives.

Executive Leadership

The company is managed by a team of eight corporate officers responsible for guiding its operational and strategic direction.

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